Shares of Behari Lal Engineering rallied over 14% to Rs 525.90 on the BSE on Wednesday, extending gains after a strong market debut. The shares of the company had listed at a 63% premium to its issue price of Rs 285 earlier in the day.Priced in the range of Rs 271-Rs 285 per share, the Rs 302-crore IPO was a fresh issue of Rs 93 crore and an offer for sale (OFS) of 73.20 lakh equity shares worth around Rs 209 crore.Investor interest was already evident ahead of the IPO, with the company raising Rs 90.48 crore from anchor investors. It allotted 31.75 lakh equity shares at Rs 285 apiece to marquee investors, including Tata AIA Life Insurance Company, PineBridge Global Funds, Amicorp Capital (Mauritius) Ltd, WhiteOak Capital and Bandhan Mutual Fund.Also Read | Stellar Start! Behari Lal Engineering shares list at 63% premium over IPO priceWhat brokerages are sayingSBI Securities assigned a Subscribe rating on the stock post-listing. “Robust listing gains indicate that there is strong investor appetite, with investors willing to add the stock at a premium to the issue price,” said Sunny Agrawal, Head of Fundamental Research at SBI Securities. The brokerage maintains its positive stance on the company.“Fresh investment is advisable with a Buy-on-Dips strategy,” he said, adding that investors looking for a “listing pop” could book profits over the next 2-3 days.“At the IPO price, the issue was valued at a reasonable 18.7x FY26 P/E, well below the peer average of 31x for names such as AIA Engineering, Steelcast and Vardhman Special Steels,” said Shivani Nyati, Head of Wealth at Swastika Investmart. She added that the listing of one of India’s leading metal-roll manufacturers, with a 10–11.5% domestic market share, at a 63% premium to the issue price pushed its market capitalisation to around Rs 1,937 crore.“Investors who got allotment could book partial profits amid the listing-day strength,” she said, adding that those with a longer-term view can hold the stock with a stop-loss of Rs 380.Use of IPO proceedsThe company plans to use the proceeds from the fresh issue to purchase and install equipment and machinery, including computers and peripherals, along with related civil work at its manufacturing facilities. The funds will also be used to install rooftop solar panels at both facilities, repay or prepay certain borrowings, and meet general corporate purposes.About Behari Lal EngineeringIncorporated in 1995, Behari Lal Engineering is an integrated iron and steel manufacturer specialising in precision-engineered components such as metal rolls, engineering castings, alloy steel products, forging ingots and forged shafts.As of March 31, 2026, the company had served 1,825 domestic and international customers, including Amba Shakti Industries, BMW Industries, Shyam Metallics and Energy, Laxcon Steels, MSP Steel & Power, Jai Balaji Industries, Propel Industries and Metso India.Its manufacturing operations span two units in Mandi Gobindgarh, Punjab, with an order book of Rs 178.57 crore as of May 31, 2026.